Episode 7 – The Accounting Equation
Recorded: May 5, 2020
Released: May 5, 2020
Intro by Clive Castle
Sounds by Zapsplat
Assets = Liabilities + Owner’s Equity is a fundamental element of bookkeeping and accounting. Patrick explains why it is important and you’ll get an understanding of what happens when it doesn’t balance.
For additional understanding, please review Episode 004 on Debits and Credits, Episode 005 on Double Entry Bookkeeping, and Episode 006 on Answers to Sample Transaction Data. Reviewing these previous episodes and thinking about the effect on the accounting equation can really bring the concept home.